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Analysts Still Bullish on Teleflex Stock

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Bottom line

Teleflex’s (TFX) interest expenses increased from $19.89 million in the second quarter of 2017 to $26.65 million in the second quarter of 2018. Its income taxes, on the other hand, decreased from $12.1 million in the second quarter of 2017 to $9.58 million in the second quarter of 2018.

Teleflex generated net income of $78 million in the second quarter of 2017. In the second quarter of 2018, it incurred a net loss of $2.49 million, which translated to a net loss per share of $0.05 in the second quarter. Its net income per share was $1.67 in the second quarter of 2017.

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Its current ratio, a metric of how effectively a company can meet its short-term obligations, is 2.20x. In comparison, the current ratios of peers Becton Dickinson (BDX), Hologic (HOLX), Medtronic (MDT), and Zimmer Biomet Holdings (ZBH) are 1.20x, 1.30x, 2.30x, and 2.40x, respectively, indicating that Teleflex is in a strong position to satisfy its short-term obligations.

Analyst recommendations

In September, nine of the 11 analysts covering Teleflex (TFX) have given the stock a “buy” or higher rating. Two analysts have given it a “hold.” The mean rating for Teleflex stock is 1.73 with a target price of $292.56, implying an upside potential of 18% over its closing price of $248 on September 6.

Peer ratings

Teleflex’s peers Becton Dickinson (BDX), Hologic (HOLX), Medtronic (MDT), and Zimmer Biomet Holdings (ZBH) have mean analyst ratings of 1.83, 2.16, 2.24, and 2.25, respectively, and target prices of $268.07, $45.13, $102.45, and $136.39, respectively.

In the next part, we’ll look at Teleflex’s valuation metrics.

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